H.F. 20 Section 1. Section 84A.5, subsection 4, Code 2021, is 1 amended to read as follows: 2 4. The division of labor services is responsible for the 3 administration of the laws of this state under chapters 88 , 4 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 91F, 92 , 5 and 94A , and sections 73A.21 and 85.68 . The executive head of 6 the division is the labor commissioner, appointed pursuant to 7 section 91.2 . 8 Sec. 2. Section 91.4, subsection 2, Code 2021, is amended 9 to read as follows: 10 2. The director of the department of workforce development, 11 in consultation with the labor commissioner, shall, at the 12 time provided by law, make an annual report to the governor 13 setting forth in appropriate form the business and expense of 14 the division of labor services for the preceding year, the 15 number of remedial actions taken under chapter 89A , the number 16 of disputes or violations processed by the division and the 17 disposition of the disputes or violations, and other matters 18 pertaining to the division which are of public interest, 19 together with recommendations for change or amendment of the 20 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 21 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 22 and the recommendations, if any, shall be transmitted by the 23 governor to the first general assembly in session after the 24 report is filed. 25 Sec. 3. NEW SECTION . 91F.1 Meal and rest periods —— 26 requirements. 27 1. As used in this chapter, unless the context otherwise 28 requires: 29 a. “Commissioner” means the labor commissioner appointed 30 pursuant to section 91.2. 31 b. “Employee” means a natural person who is employed in this 32 state for wages by an employer. 33 c. “Employer” means a person, as defined in section 4.1, 34 who in this state employs for wages a natural person. An 35 -1- LSB 1562YH (1) 89 je/rn 1/ 6

H.F. 20 employer does not include a client, patient, customer, or 1 other person who obtains professional services from a licensed 2 person providing the services on a fee service basis or as an 3 independent contractor. 4 2. An employer shall provide an employee with appropriate 5 meal periods and appropriate rest periods. 6 a. An appropriate meal period shall be a period of not less 7 than thirty minutes during an employee’s work period in which 8 an employee works at least seven hours. The meal period shall 9 be taken between the second and fifth hours. If an employee 10 works more than seven hours, the meal period shall be taken 11 between the third and sixth hours. 12 b. An appropriate rest period shall be a paid period of 13 not less than ten minutes during every consecutive four-hour 14 period of work taken by an employee approximately in the middle 15 of each four-hour period. The rest period is in addition to a 16 meal period, if applicable, and shall not be added to a meal 17 period or deducted from the work period to reduce the overall 18 length of the total work period. 19 3. An employer is not required to pay for a meal period 20 if an employee is free from work duties during the employee’s 21 entire meal period. An employee shall be paid for the meal 22 period if any of the following occur: 23 a. The employee is required or allowed to remain on duty. 24 b. The employee is required to be on-call at the work 25 premises or designated worksite in order to be available to 26 return to duty even if the employee is not called back to duty. 27 c. The employee is called back to duty during the employee’s 28 meal period even though the employee is not usually on-call 29 during the meal period. 30 Sec. 4. NEW SECTION . 91F.2 Meal and rest periods —— 31 exemptions. 32 1. Meal and rest period requirements may be modified by the 33 terms of a collective bargaining agreement if the collective 34 bargaining agreement entered into by the employees prescribes 35 -2- LSB 1562YH (1) 89 je/rn 2/ 6

H.F. 20 specific terms concerning meal periods and rest periods. 1 2. Meal and rest period requirements apply to hourly paid 2 and salary-paid employees. Management or employees involved 3 in agricultural jobs are not required to have breaks or meal 4 breaks. For the purposes of this section, agricultural jobs do 5 not include work in the production of seed, limited to removal 6 of off-type plants and corn tassels and hand-pollinating during 7 the months of June, July, and August by persons ages fourteen 8 and older. 9 3. Meal period requirements may be waived if an employer 10 shows that the ordinary nature and circumstance of the work 11 prevented the employer from establishing and maintaining a 12 regularly scheduled meal period. The factors that may be 13 considered regarding the waiver of the requirements are limited 14 to the following: 15 a. The safety and health needs of employees, patients, 16 clients, and the public. 17 b. The lack of other employees available to provide relief 18 to an employee. 19 c. The cost involved in shutdown and startup of machinery in 20 continuous operation of the industrial process. 21 d. The intermittent and unpredictable workflow not 22 controlled by the employer or employee. 23 e. Unforeseeable equipment failures, emergencies, or acts 24 of nature that require immediate and uninterrupted attention 25 by an employee. 26 Sec. 5. NEW SECTION . 91F.3 Civil penalties. 27 1. Any employer who violates the provisions of this chapter 28 or the rules adopted pursuant to this chapter is subject to a 29 civil penalty of not more than one hundred dollars for each 30 violation. The commissioner may recover the civil penalty 31 according to subsections 2 through 5. Any civil penalty 32 recovered shall be deposited in the general fund of the state. 33 2. The commissioner may propose that an employer be assessed 34 a civil penalty by serving the employer with notice of such 35 -3- LSB 1562YH (1) 89 je/rn 3/ 6

H.F. 20 proposal in the same manner as an original notice is served 1 under the rules of civil procedure. Upon service of such 2 notice, the proposed assessment shall be treated as a contested 3 case under chapter 17A. However, to remain a contested case, 4 an employer must request a hearing within thirty days of being 5 served. 6 3. If an employer does not request a hearing pursuant 7 to subsection 2 or if the commissioner determines, after an 8 appropriate hearing, that an employer is in violation of this 9 chapter or the rules adopted pursuant to this chapter, the 10 commissioner shall assess a civil penalty which is consistent 11 with the provisions of subsection 1 and which is rendered with 12 due consideration for the penalty amount in terms of the size 13 of the employer’s business, the gravity of the violation, 14 the good faith of the employer, and the history of previous 15 violations. 16 4. An employer may seek judicial review of any assessment 17 rendered under subsection 3 by instituting proceedings for 18 judicial review pursuant to chapter 17A. However, such 19 proceedings must be instituted in the district court of the 20 county in which the violation or one of the violations occurred 21 and within thirty days of the day on which the employer was 22 notified that an assessment has been rendered. Also, an 23 employer may be required, at the discretion of the district 24 court and upon instituting such proceedings, to deposit the 25 amount assessed with the clerk of the district court. Any 26 moneys so deposited shall either be returned to the employer 27 or be forwarded to the commissioner for deposit in the general 28 fund of the state, depending on the outcome of the judicial 29 review, including any appeal to the supreme court. 30 5. After the time for seeking judicial review has expired 31 or after all judicial review has been exhausted and the 32 commissioner’s assessment has been upheld, the commissioner 33 shall request the attorney general to recover the assessed 34 penalties in a civil action. 35 -4- LSB 1562YH (1) 89 je/rn 4/ 6

H.F. 20 Sec. 6. NEW SECTION . 91F.4 Duties and authority of 1 commissioner. 2 1. The commissioner shall provide further exemptions from 3 the provisions in this chapter by rule when reasonable. 4 2. In order to carry out the purposes of this chapter, the 5 commissioner or the commissioner’s designee, upon presenting 6 appropriate credentials to the employer or agent of the 7 employer, may do any of the following: 8 a. Inspect employment records relating to meal and rest 9 periods for employees. 10 b. Interview an employer or employee or an agent of 11 the employer or employee, during working hours or at other 12 reasonable times. 13 3. The commissioner shall adopt rules pursuant to chapter 14 17A to administer this chapter. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill requires an employer to provide an employee with 19 appropriate meal periods and appropriate rest periods. 20 The bill states that an appropriate meal period shall be not 21 less than 30 minutes during an employee’s work period of at 22 least seven hours. The meal period is to be taken between the 23 second and fifth hours of the work or, if the employee works 24 more than seven hours, between the third and sixth hours. 25 The bill states that an appropriate rest period shall be a 26 paid period of not less than 10 minutes during every four-hour 27 work period. The rest period is taken in the middle of the work 28 period. The rest period is in addition to the meal period and 29 cannot be added to the meal period or deducted from the work 30 period to reduce the overall length of the total work period. 31 The bill defines an “employee” as a natural person who is 32 employed in this state for wages by an employer. An “employer” 33 is defined as a person, as defined in Code section 4.1, who 34 employs a natural person for wages. 35 -5- LSB 1562YH (1) 89 je/rn 5/ 6

H.F. 20 The bill provides that an employer is not required to pay for 1 a meal period if an employee is free from work duties during 2 the employee’s entire meal period. 3 The bill allows three exemptions to the meal and rest period 4 requirements. The first exemption is if the meal and rest 5 period requirements are modified by the terms of a collective 6 bargaining agreement. However, the exemption is valid only 7 if the collective bargaining agreement entered into by the 8 employees prescribes specific terms concerning meal periods and 9 rest periods. 10 The second exemption states that meal and rest period 11 requirements apply to hourly paid and salary-paid employees. 12 However, management or employees involved in certain 13 agricultural jobs are not required to have breaks or meal 14 breaks. 15 The third exemption is if an employer shows that the ordinary 16 nature and circumstance of the work prevented the employer from 17 establishing and maintaining a regular scheduled meal period. 18 The bill provides civil penalties for violating the new 19 Code chapter. An employer who violates the provisions shall 20 be subject to a penalty of up to $100 for each violation. The 21 labor commissioner may recover the penalties under Code chapter 22 17A contested case procedures. Any penalties recovered shall 23 be deposited in the general fund of the state. 24 The commissioner may propose that an employer be assessed a 25 penalty by serving the employer with notice of a penalty in the 26 same manner as an original notice is served under the rules of 27 civil procedure. 28 The bill provides the labor commissioner with the authority 29 to provide further exemptions from the requirements of the bill 30 by rule when reasonable. Also, the labor commissioner or the 31 commissioner’s designee may inspect employment records relating 32 to rest periods for employees and interview an employer or 33 employee or an agent of the employer or employee, during 34 working hours or at other reasonable times. 35 -6- LSB 1562YH (1) 89 je/rn 6/ 6